Metals News
UPDATE 1-Canada's NovaGold to Buy Copper Canyon Resources
industry news
Mar 8,2011

March 7 (Reuters) - Canada's Copper Canyon Resources Ltd agreed to be bought by NovaGold Resources Inc in an all-stock deal, sending Copper Canyon's shares up 29 percent to their highest in over four years.

NovaGold will issue 0.0735 of its shares for every Copper Canyon share, and one share of a new company -- holding most of Copper Canyon's assets -- for every four Copper Canyon shares.

The NovaGold share component of the deal is valued at about C$53.4 million based on its Friday close of C$13.81.

NovaGold first made an offer for Copper Canyon in December, valuing the junior miner at C$34.1 million.

The new company will hold almost all of Copper Canyon's assets, except its 40 percent stake in the Copper Canyon copper-gold-silver mine in British Columbia, the company said in a statement.

Shares of Copper Canyon rose as much as 29 percent to C$1.08, before paring some gains to trade at C$1.03 in Monday morning trade on the Toronto Venture Exchange.

NovaGold shares were down slightly at C$13.74 on the Toronto Stock Exchange.



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